UK House of Lords Backs Mandatory Digital Asset Strategy in 194–138 Vote
Key Takeaways
- •The House of Lords approved Amendment 88 to the Financial Services and Markets Bill by a 194–138 vote, despite opposition from the ruling Labour Party.
- •The amendment, introduced by Conservative peer Baroness Neville-Rolfe, would require the Treasury to prepare, publish, and consult on a digital asset strategy within 12 months of the bill becoming law.
- •The proposed strategy would cover cryptoassets, stablecoins, and tokenized securities, as well as innovation, consumer protection, and firms' access to banking, payment, and settlement services.
- •Treasury Minister for Investment Lord Stockwood had previously rejected calls for a statutory framework in a July debate, stating the government believed it already had a digital asset strategy in implementation.
- •The bill must now return to the House of Commons, where lawmakers can accept, amend, or reject the Lords' changes, deciding whether the strategy requirement stays in the bill.
The UK House of Lords has backed an amendment requiring the government to develop a digital asset strategy, voting 194–138 on Wednesday despite opposition from the Labour government.
The amendment was added to the Financial Services and Markets Bill during its Report Stage. The bill is continuing through Parliament and would introduce broader changes to the UK’s financial services regulatory framework. The House of Lords division record and bill amendment provide the official parliamentary records.
Amendment 88, introduced by Conservative peer Baroness Neville-Rolfe, would require the Treasury to prepare, publish and consult on a digital asset strategy within 12 months after the Financial Services and Markets Bill becomes law. The requirement is therefore contingent on the bill completing its remaining parliamentary stages and receiving Royal Assent.
The proposed strategy would cover cryptoassets, stablecoins and tokenized securities. It would also address innovation, consumer protection, and firms’ access to banking, payment and settlement services.
The vote follows months of debate over the UK’s approach to digital assets. During a July debate, Treasury Minister for Investment Lord Stockwood rejected calls for a statutory framework, saying the government believed it already had a digital asset strategy and was implementing it. The Hansard record documents the discussion.
The ruling Labour Party opposed the amendment, arguing that it did not adequately address the rapid development of digital assets or the need for a cohesive regulatory framework.
The UK Cryptoasset Business Council, which said it worked with lawmakers on the amendment, welcomed Thursday’s vote. It highlighted Lord Chris Holmes’ question of whether the UK is “simply regulating digital assets” or “building a digital assets economy.”
The bill must now return to the House of Commons, where lawmakers can accept, amend or reject the Lords’ changes. The Commons’ response will determine whether the strategy requirement remains part of the bill as it proceeds toward becoming law.
